The Hidden Cost of Customer Service

Many of us are drawn to the Business Process Outsourcing (BPO) industry by the promise of opportunity, especially across borders. Businesses are attracted as well to the cost savings, often not realising the human cost behind it, or choose to close their eyes. Yet, for countless individuals, this promise quickly shatters, revealing a stark reality of systemic exploitation and profound human cost. My own experience of being "set up to fail" and having my "desperation for a job" tested resonates deeply with a pervasive pattern within this sector.

This post aims to expose how global BPO giants like Teleperformance and Majorel, driven by an insatiable pursuit of profit and shareholder value, perpetuate a cycle of employee dissatisfaction, legal violations, and outright exploitation. The blame lies not with the beleaguered floor-level management, but squarely with the boardrooms whose strategic decisions prioritize a "race to the bottom" over fundamental human dignity. This is not merely a consequence of capitalism, but a direct outcome of unchecked corporate greed sweeping through the BPO/BTO industry.

A critical observation is the deceptive allure of opportunity, often employed as a recruitment tactic. The widespread negative experiences related to international relocation, coupled with the BPO industry's fundamental reliance on lower-cost labor markets, suggest that the "opportunity" presented is frequently misleading. The desperation of job seekers, a vulnerability these companies implicitly exploit, helps maintain a readily available, often transient, and less demanding workforce.

Furthermore, a significant disparity exists between the public image projected by these corporations and the lived reality of their employees. Teleperformance publicly claims 96% positive employee reviews and boasts "Great Place to Work" certifications. However, internal data and employee feedback directly contradict this, indicating that employees are "mostly dissatisfied with their total compensation" and rate working conditions "below average." This stark contradiction reveals a deliberate effort to project a positive image to investors and the public, designed to mask underlying labor issues and attract talent, while the internal realities remain dire.

The Illusion Shattered: Unethical Recruitment and Cross-Border Exploitation

Many, desperate for employment, are enticed by job offers requiring international relocation, often with promises of support and better living conditions. These promises frequently mask harsh realities. Teleperformance, for example, actively recruits workers from abroad to its Greece offices, offering relocation packages. However, expat employees frequently warn that these are often "financial traps" with hidden costs and strict conditions. Testimonies from Tunisian workers who moved to Teleperformance in Greece reveal hopes for improved income and living conditions shattered by "strenuous tasks, precarious contracts, and restrictions relating to their status as non-European foreigners."

Once relocated, the promised support often evaporates, leaving employees vulnerable. Employee testimonies from Teleperformance in Portugal reveal "room from hell" scenarios, including cockroach infestations, mold, and even harassing roommates in company-provided housing. In Greece, company-arranged housing for Teleperformance employees involved "rent gouging and wage deductions" at exorbitant rates, leaving employees barely breaking even. Majorel also faces similar accusations in Barcelona, where employees were promised help with legal documents (NIE) but were instead given contacts they had to pay privately, often into a "black market."

This systemic failure creates a cycle where employees, especially those who have moved internationally, become "desperate enough" to stay due to financial precarity. The high turnover rate at Teleperformance, estimated to exceed 90% annually, suggests a "churn and burn" model. Relocation, far from being a genuine benefit, functions as a mechanism of control and exploitation, limiting an employee's autonomy and ability to seek alternative employment or challenge working conditions.

The Daily Grind: A Culture of Burnout and Unrealistic Demands

Despite corporate claims of being a "Great Place to Work," employee experiences paint a starkly different picture. Teleperformance boasts certifications and high satisfaction rates, with its CEO even claiming the company's purpose was "to be a force of good… for the employees." Yet, this is profoundly contradicted by Teleperformance's own internal data showing employees are "mostly dissatisfied with their total compensation" and rate working conditions "below average." This represents a form of "social washing" where companies invest in certifications to appeal to investors and clients, while systemic issues persist.

Employees face immense pressure, leading to widespread burnout and psychological distress. Teleperformance workers report "strenuous tasks," "constant stream of calls," and "pressure from customers," leading to physical ailments. A shocking testimony from a former employee recounts a manager telling a new team leader, "Do you see all of those people? Treat them like animals because that's what they are!" Content moderators for TikTok and Meta, earning as little as $10 per day, are required to watch videos depicting murder, suicide, and child abuse, suffering "widespread occupational trauma without psychological support." Employees are often "overwatched" with digital surveillance, and bathroom breaks can require supervisor permission, leading to feelings of "modern slavery."

The work environment is frequently characterized by inadequate training, inconsistent feedback, and limited growth opportunities. Teleperformance employees feel "overwhelmed because the training is not enough." Majorel employees report technical issues from day one, with managers suggesting employees "make an effort and work without the proper tools." High employee turnover in the BPO industry is widely attributed to job-related burnout, limited career advancement, and workplace stress. This suggests a two-tiered system: a public-facing narrative of high-quality service contrasting sharply with an internal reality of high churn and exploitative conditions for the frontline workforce.

A Pattern of Disregard: Documented Legal Violations and Unethical Practices

Both companies have faced significant allegations of violating labor laws and suppressing workers' rights. Teleperformance was subject to a complaint by labor unions documenting "unsafe working conditions, monitoring, surveillance, union busting and retaliation against employees in ten countries." A $1.7 million class action settlement was reached for failing to pay overtime wages. Majorel was implicated in a lawsuit where Meta allegedly directed them not to hire former content moderators, a move seen as a way to "penalize workers for organising and speaking up."

The demands of content moderation have led to severe ethical failures and profound psychological harm. Teleperformance content moderators in Colombia earned as little as $10 per day and were required to watch videos depicting murder, suicide, and child abuse. Despite public criticism, Teleperformance, after announcing it would exit "the highly egregious part of the trust and safety business," reversed this decision. Majorel faces a lawsuit in Barcelona from a TikTok moderator for "psychological damage" due to "absolute inhumane labor conditions," including viewing 800-1200 graphic videos daily with inadequate support.

Beyond labor practices, Majorel has been linked to significant data breaches. Majorel was the service provider involved in a "massive theft" of personal data of 10 million jobseekers from Pôle Emploi in France, linked to a security flaw in file transfer software. A union linked this to "massive outsourcing... and to the desire of sponsors to reduce the associated expenditure," connecting data security failures directly to cost-cutting pressures.

The Boardroom's Bottom Line: Greed Driving the "Race to the Bottom"

The financial rewards at the top echelons of these companies stand in stark contrast to the compensation of their frontline workers. Teleperformance's average executive compensation is over $235,000 annually, with the most compensated executive earning $700,000. In stark contrast, some content moderators, performing highly traumatic work, earn as little as $10 per day. Majorel's Management Board remuneration policy indicates a significant 60% variable compensation tied to financial targets like net revenue growth and operating EBITDA margin.

Executive compensation structures serve as a direct incentive for practices that lead to exploitation. The high variable component of executive remuneration, directly tied to financial metrics, creates a powerful inducement for boardrooms to prioritize aggressive cost-cutting measures. These measures directly translate into suppressed wages, poor working conditions, high turnover, and a lack of investment in employee well-being for frontline employees.

Corporate strategies explicitly prioritize financial metrics and shareholder returns, often through aggressive cost optimization that directly impacts labor. Teleperformance's annual results highlight "profitable growth and strong cash flow" and a dividend per share. Their stated strategy is "value creation through integrated, sustainable and profitable growth, beneficial for all its partners, clients, shareholders and employees," yet the evidence suggests "employees" are often the last priority. The recent acquisition of Majorel by Teleperformance is explicitly expected to yield €150 million in "synergies," a common euphemism for cost reductions, frequently achieved through labor optimization.

The BPO industry's business model is inherently driven by cost reduction, leading to a global "race to the bottom" in labor conditions. Wages are the primary cost component, meaning pressure on wages is constant and directly impacts profitability. This "race to the bottom" allows companies to pay low wages and offer poor working conditions in countries with lax regulations. The business model of labor exploitation utilizes "legal, grey and or illegal" methods to gain "unfair economic advantage and distort competition." This directly aligns with the principle of "GREED" as the driving force.

Beyond Blame: Why Floor-Level Management is Not the Culprit

Floor-level managers, while often the direct point of contact for employee grievances, are themselves products of and constrained by the same top-down, profit-driven system. They are frequently under immense pressure to enforce metrics and policies dictated from above, with little autonomy to effect meaningful change. The assertion that "floor level management is not to blame" is crucial. While "weak management undermines performance and culture," this weakness is often a symptom of unrealistic expectations from higher up. Managers are primarily under pressure to enforce targets, not necessarily to create them.

The strategic decisions regarding cost-cutting, performance metrics, labor practices, and overall business models originate from the boardroom, not the operational floor. Executive compensation is directly tied to financial targets, incentivizing aggressive cost-saving measures that trickle down to operational mandates. Compliance issues, underinvestment in employee well-being, and the lack of proper training and tools are systemic failures, not localized managerial choices. They are consequences of a business model that prioritizes financial returns over human capital investment.

Conclusion: A Call for Accountability and Systemic Change

The evidence overwhelmingly demonstrates that the BPO industry, exemplified by Teleperformance and Majorel, operates on a model where human capital is treated as a disposable commodity in pursuit of maximized shareholder value. From misleading relocation promises and exploitative working conditions to documented legal violations, psychological trauma, and data breaches, the human cost of this "greed-driven capitalism" is immense. It creates a cycle of desperation, burnout, and a "race to the bottom" undermines human dignity.

It is unequivocally clear that the systemic failures, the ruthless disregard for laws, and the erosion of employee satisfaction stem directly from the strategic decisions made in the boardrooms of these global corporations. Executive compensation structures explicitly incentivize these very behaviors, driving a relentless pursuit of profit that sacrifices worker well-being for inflated margins and shareholder returns. Floor-level management, while executing these directives, operates within a system designed by those at the top.

This exposé serves as a critical call to action for all stakeholders:

• Greater Transparency: Demand genuine transparency in labor practices, including honest, independently audited reporting on employee satisfaction, turnover, and working conditions, moving beyond self-serving certifications and glossy ESG reports.

• Stronger Labor Protections and Enforcement: Advocate for robust international labor laws and their stringent enforcement across all jurisdictions where BPO companies operate, ensuring fair wages, humane working conditions, the right to organize without fear of retaliation, and adequate mental health support.

• Ethical Investment: Urge investors, institutional and individual, and corporate clients to scrutinize BPO companies' ethical records and demand accountability for human rights and labor standards. Make ethical conduct a non-negotiable prerequisite for business partnerships and investment.

• Fundamental Re-evaluation of Business Models: Call for a fundamental shift in the BPO industry's business model, moving away from a "cost-first" approach to one that genuinely values human dignity, invests in employee well-being, and recognizes that sustainable profit should not come at the expense of exploitation.

The time has come to dismantle the structures of greed that perpetuate this exploitation and build an industry where empathy, ethics, and human well-being guide the bottom line. True corporate success must be measured not just in financial gains, but in the dignity and flourishing of every individual who contributes to it.